Avon agreement to bring jobs, revenue to city

AVON — City Council recently approved a proposed Ohio Enterprise Zone agreement for L&W Engineering that is expected to bring more than 30 new jobs to Avon.
L&W Engineering, a Michigan-based aluminum and steel fabricating company that supplies a number of parts to the automotive industry, is looking to expand its Avon site as part of a multimillion-dollar expansion.
According to Bill Logan, Avon finance director, the 75 percent proposed abatement would be over 10 years.
Logan said the company also would bring in about $8.5 million in machinery and equipment, and invest $4 million in the new building.
The expansion would take place adjacent to the company’s already-owned property on Jaycox Road, said Mayor Bryan Jensen.
In return and as part of the agreement, L&W would add 35 jobs in the first two years and benefit the city’s revenue by generating approximately $23,000 a year in income tax.
L&W would have to pay just $22,000 per year in property taxes for 10 years under the abatement, relieving them of an additional $66,000 of tax obligations that they would pay without the abatement.
Logan said $14,000 of the property tax will go to the city’s school district, adding that the outcome of this agreement would leave a “definite” and positive economic impact on the city.
“Thirty-five more jobs here just adds to the overall economy and generates sales revenue for the county,” Logan said. “It’s incremental revenue to the city and the school district. We wouldn’t have that without the expansion.”
Logan said this is not the first time Avon and L&W had a similar agreement. Two years ago, the company successfully expanded and surpassed its goals in Avon, he said.
Jensen added L&W had planned to close down the Avon facility at one point, but said the company saw value in expanding in the area again, which he noted speaks positively on the city’s ongoing growth.
“It’s always exciting when you get 35 blue collar jobs,” Jensen said. “It says a lot about what’s happening in the city of Avon and around this area. We showed (L&W) a way they can add on to the city, and we showed them how they can expand on the piece of property they had.”
The proposed Ohio Enterprise Zone agreement was forwarded to Lorain County commissioners for its consideration. It then will require state approval from the Ohio Department of Administrative Services.
Logan said L&W will present its plans for the expansion at the city’s next planning commission meeting July 16.
“They’re wanting to get started right away,” he said.